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BRAZIL Expand Your Business Hair and Personal Care Brand

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Presentation on theme: "BRAZIL Expand Your Business Hair and Personal Care Brand"— Presentation transcript:

1 BRAZIL Expand Your Business Hair and Personal Care Brand
OPPORTUNITIES 2016 Presented by: Gerard Pitchford BRAZIL

2 Objective Our objective is to partner with a brand that has the formula and image to attract Brazilians of African decent to purchase their products, and build a substantial market share in one of the fastest growing markets in the world, with over, 1.5M beauty salons and 103M potential customers.

3 Use established contacts to represent your brand in the growing Brazilian market
Gerard Pitchford: Corporate and entrepreneurial experience in United States and internationally Demonstrated expertise in conceptualizing and executing business plans in the U.S. and Brazil. Established high level contacts in business and government the U.S. and Brazilian markets Broad management experience in finance, marketing, operations, and business development American expatriate with Brazilian residency. (Brazilian Permanent Residence card – equivalent of U.S. Green Card.)

4 Core Strategy The Concept:
Become the exclusive agent for your brand in Brazil Have first mover advantage in one of the fastest growing economies in the world Work together to build a network of distributors throughout the country Manage manufacturing and delivery of the products to the different distributors throughout Brazil.

5 African-Brazilians - growing market
Like the US in the 1960’s, African-Brazilians are prospering, the population is growing in size, and demanding products that fit their needs. There are no visible African-American owned hair care or personal care companies for male or females in Brazil with any market share. But there will be. There is one African-Brazilian company with a minimal market share in Rio de Janeiro and Bahia. Their marketing strategy is solely based on selling products through company owned hair salons. The average exchange rate in 2015 was R$3.85 to the USD /

6 African-Brazilians - growing market continued
Your company could be the ground-breaker in Brazil. The US is a very competitive market with plenty of competition. Why not really grow your business here in Brazil, without any major competition, currently. We are inviting your company to participate in Brazil’s growing market. With proper strategy and execution, your company can capture a significant share of Brazil’s market now.

7 Why Brazil? The cosmetics market grew by 11% in 2014
Brazil is the 7th largest economy in the world. Brazilians are the 3rd largest cosmetics and hair care sector consumers in the world. Sales of toiletries, perfumes, and cosmetics reached $32.5B in 2014 The cosmetics industry plays a key role in the Brazilian economy and represents more than 1.8% of the country’s GDP. Brazil is the third largest consumer market for cosmetics and other beauty products in the world.

8 Brazil’s recorded net sales
The hair care market was driven by hair conditioners, hair colors and shampoos, which together represent 90% of the hair care segment. Within the context of prospective emerging markets driving growth, Brazil is a special case. With a 20% contribution to global hair care retail value growth in 2013, Brazil not only accounted for the most growth, but also, going forward, it is projected to surpass the U.S. as the largest hair care market, in nominal terms, by 2017.

9 Brazil’s recorded net sales - continued
Growth in Brazil is projected to come from all hair care categories, but conditioners are expected to lead absolute growth. Brazilian women have a strong preference for straight hair and spend considerable amounts on conditioners to moisturize and hydrate their hair. In fact, Brazil is the world’s largest market for conditioners, both in terms of value size and per capita spending. Brazil recorded net sales of $7B in 2014, a year- over-year increase of 11%.

10 Afro-Brazilian women are buying hair care brands that are starting to target them
African-Brazilian consumers have been ignored until recently Local hair care brands have begun to target the market, due to rising incomes / spending power Afro-Brazilian women are focusing on the current trends in personal appearance makes this market very viable

11 Local hair care brands are targeting African-Brazilians

12 Local hair care brands are targeting African-Brazilians, continued

13 Local hair care brands are targeting African-Brazilians, continued

14 Brazil’s Golden Triangle states, São Paulo, Rio de Janeiro and Belo Horizonte
Population per state: São Paulo 44,035,304 Rio de Janeiro ,461,173 Minas Gerais ,734,097 São Paulo is the richest and most populous state of Brazil, respectively; Rio de Janeiro is the second richest and the third most populous state, Minas Gerais is the third richest and the second most populous state. Seven (7) out of eight (8) major international and domestic corporations are located in this area. Combined these three (3) states are roughly 42 per cent of Brazil’s total population and are the economic driving force behind Brazil’s economy, with 53.1% of GDP . All three (3) states are connected by a modern highway infrastructure Brazil: 26 states in total, with a population approx. 202M /

15 The current population of Brazil is 208,837,974 as of Thursday, January 28, 2016, based on the latest United Nations estimates. Brazil population is equivalent to 2.83% of the total world population. Brazil ranks number 5 in the list of countries by population. The population density in Brazil is 25 per Km2 (65 people per mi2). The total land area is 8,349,320 Km2 (3,223,689 sq. miles) 84 % of the population is urban (176,361,649 people in 2016) The median age in Brazil is 31.7 years.

16 Portuguese speaking African countries as natural trading partners in Brazil

17 African-Brazilians in the majority for the first time
The 2010 census showed that 97 million Brazilians, or 50.7% of the population, define themselves as black or mixed race 91 million or 47.7% label themselves white The amount of people declaring themselves black or mixed race has risen from 44.7% to 50.7% “Let the truth be told”

18 African residents in 3 large European countries only total 3.8M
The general perception is people of African descent in Europe represent opportunities for US based hair companies to expand; Brazil presents a much larger base with disposal income to spend. People of African descent were approximately 3% of the United Kingdom's population in That’s a 1% increase in 10 years. French Africans are just under 4% of the population. African emigrants in Italy (including Italian citizens and residents originally from Africa) numbered about 1M residents or 2% of the population.

19 Comparison between Brazil and the Caribbean
The Caribbean has a ethnically diverse total population of 42.5M inhabitants Cuba has approximately 11M inhabitants Haiti has roughly 11M inhabitants Each of the above populations have limited disposable income. The remaining 26 countries have varying populations which accounts for the remaining balance of the total Caribbean population. In addition, each country will have varying laws and taxes with regard to importing goods.

20 Comparison between Brazil, Europe and the Caribbean's, African Descendant Population
Brazil has approximately 52M more potential customers for the right brand, continued Brazil’s African population is double the size of all the above countries combined For your company Brazil is one-stop vs. 31 (Caribbean and European) countries. One set of rules and regulations vs. 31. Note: There are 39M African-Americans. Only Nigeria, with a population of 184M, has more people of African decent than Brazil. Country Population Brazil 101 Mil France 3 Mil UK 2.8 Mil Italy 1 Mil Caribbean (28 countries) 43 Mil Total (without Brazil) 49 Mil

21 Can’t I just find a broker and ship my products to Brazil? No.
Imported cosmetics must have the same authorization as cosmetics manufactured in Brazil. The Ministry of Health controls the manufacture and import of all cosmetic products, aiming to guarantee the safety and quality of the products, in order to protect public health. All the establishments that produce, import or store cosmetics, or any product related to toiletry and fragrances, must be registered in ANVISA (the National Health Surveillance Agency) and have official authorization for the company to operate. Just one of a few legal processes

22 Next Steps A conference call to discuss:
Why we think your company’s products would be a good fit for Brazil. Send / bring samples to Rio de Janeiro. An in-person meeting either in the US or Brazil (our preference) Preliminary discussions on our business arrangement

23 Contact information Gerard “Gerry” Pitchford Website: Phone: Office (USA/Brazil) Cell phone (USA/Brazil) Cell phone Brazil Address: Spencer Brands, Inc. Gerard Pitchford Av. Rio Branco #134 16 Andar Rio de Janeiro, RJ Brazil

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35 THANK YOU FOR TAKING YOUR TIME TO READ THE ABOVE PRESENTATION!
OBRIGADO POR TER SEPARADO UM TEMPO DO SEU DIA, LENDO MEU TEXTO!


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